Microsoft is expanding its Sovereign Cloud capabilities with a fresh suite of services focused on AI, security, and productivity, designed to meet the evolving regulatory landscape. Announced on November 4, 2025, these enhancements build upon existing digital sovereignty controls, empowering organizations to retain data control while scaling operations. Key Highlights:

EU Data Boundary for AI: All AI data processing for EU customers will remain within the EU Data Boundary.
Microsoft 365 Copilot Expansion: In-country data processing for Copilot interactions will extend to 15 countries by 2026.
Sovereign Landing Zones: Enhanced service expansion and disconnected operations for Microsoft Azure Local.
Microsoft 365 Local GA: General availability of Microsoft 365 Local.
Azure Local Scale: Increased maximum scale with external SAN storage and NVIDIA GPUs.
Partner Specialization: Availability of the Digital Sovereignty specialization.

Microsoft continues its commitments by establishing a European board, increasing datacenter capacity, embedding digital resiliency commitments into government contracts, and expanding open-source investments. A refreshed Sovereign Landing Zone (SLZ) is built on the Azure Landing Zone (ALZ), providing a platform for customers to implement sovereign controls. Further, Microsoft is introducing a new Azure offering with the latest NVIDIA RTX Pro 6000 Blackwell Server Edition GPU, allowing organizations to accelerate AI initiatives. Microsoft 365 Local also achieves general availability, bringing core productivity workloads to Azure Local. Future Developments

Data Guardian: Provides transparency into operational sovereignty controls in European cloud environments.
Enhanced Change Controls: Configurable policies for oversight of cloud changes.
Site-to-Site Disaster Recovery: Azure Site Recovery in Azure Local to maintain business continuity.
Hybrid Transition: The ability to transition from hybrid to fully disconnected operations in Azure Local.

The roadmap also covers National Partner Clouds like Delos Cloud and Bleu, working with SAP to deploy RISE with SAP. More details will be presented at Microsoft Ignite this November.